VMware already has the VSA option for storage that technically completes.

The've rolled De-duped in memory read cache into the Vkernel (CBRC).

The've rolled SAN to SAN migration services and storage virtualization (Storage vMotion).

The've rolled in backups and replication of VMs (VDR and SRM).

like Microsoft over time part of innovating is identifying 3rd party ecosystems that you can do better.

What I expect to see is actually the reverse, moving the Hypervisor's to run in the disk array themselves (HDS and EMC are working on this).

This isn't really them embedding anything in VMware this is EMC giving away for free their Avamar VSA which is pretty useless without buying a RAIN grid ($$$$$$). This product has existed before and is so limited that its functionally useless in my mind on its own. You need a Avamar Grid somewhere else to replicate to to make it useful.

For a REALLY small shop this might be useful, but this is kind of like Veeam giving away their basic backup set. Its just a marketing gimmick.